Issue link: https://read.dmtmag.com/i/183375
October 7, 2013 • Volume 16, Number 13 • $3.99 INSPIRING SUCCESS THROUGH MARKET INTELLIGENCE www.powersportsbusiness.com 1-800/848-6247 FOCUS 20 • October 7, 2013 • Powersports Business PSB www.PowersportsBusiness.com This issue: Distributor Showcase Next issue: Helmet & Apparel Tucker strong among metric dealers SALES OF RETAIL COUNTER PARTS BY VENDOR 5 YEAR STUDY, U.S. V-TWIN DEALERS, $1.1 BILLION IN SALES HD PU, DS, TR TIER 1 SALES OF RETAIL COUNTER PARTS BY VENDOR 5 YEAR STUDY, U.S. METRIC DEALERS, $1.8 BILLION IN COMBINED SALES VENDORS IN STUDY OVER $100 MILLION EACH CHART A 2010 2012 7.1% 7.0% Pct of Tier 1 Sales held by this Vendor 7.5% 7.2% 7.4% 2011 21.5% 22.5% PU 19% 17% 16.0% 15.7% HO 15.5% 15% 14.9% 14.0% 13.7% 13% YA PO 11% WP 10.1% 9% 7% 2013 TR 23.2% 21% 85.9% 85.8% 7.0% 9.3% 7.8% 7.7% 7.6% Percent of Sales from these Vendors 23% 2009 CHART B 25% 94 other vendors 85.1% 84.6% 83.0% 10.2% 8.1% 7.8% 6.7% KA 5% 2009 V-twin dealers increasingly turning away non-Harley product cent of the market — the highest percentage of all vendors. However, by 2013 Parts Unlimited (PU) had fallen to 16 percent, and Tucker Rocky (TR) had risen to the first spot with 22.5 percent of sales. Polaris (PO) and Western Power Sports (WP) both rise in volume during this five-year period. Polaris rises from 10 percent of the market to 15.7 percent, a gain of more than 50 percent. Western Power Sports goes from 6.7 percent to 10.2 percent, again, a rise of more than 50 percent. Three OEMs — Honda (HO), Yamaha (YA) and Kawasaki (KA) — have each lost about 1 percent of market share in the space since 2009. 2010 TR 2011 PU HO 2012 YA PO WP 2013 KA PSB: FOCUS Distributors EDITOR IN CHIEF The latest study of vendor sales shows that seven vendors in the metric space have topped $100 million in sales for dealers in a five-year study by ADP Lightspeed analyst Hal Ethington. The report, provided exclusively to Powersports Business readers, finds that 1) vendors other than Harley-Davidson are finding it increasingly difficult to sell their product to American V-twin dealers, and 2) Tucker Rocky Distributing is holding steady as the most popular vendor choice for metric dealers. Here are the findings from the report from ADP Lightspeed analyst Hal Ethington: SEE PAGE 20 CHART A Harley-Davidson (HD) provides more than 80 percent of parts sold across the counter in V-twin dealerships. That percentage has held, and steadily increased, over the past five years. Three other suppliers — Parts Unlimited (PU), Drag Specialties (DS) and Tucker Rocky/ Biker's Choice (TR) — have held a consistent 7 percent share of parts sales, with the final 7 percent of sales divided among 94 other vendors. During this five-year period, Harley-Davidson has moved up from 83 percent of dollar sales to 85.9 percent — a rise of 2.9 percentage points. These points have come at the expense of the Parts Unlimited/Tucker Rocky group, which fell 0.7 points, and the group of 94, which has fallen 2.2 percentage points. CHART B Seven vendors in the metric space topped $100 million dollars for dealers in the five-years of this study. They appear here, ranked by the percentage of the market they each held in each of the five years. For the dealerships included in this study, Parts Unlimited (PU) in 2009 held 23.2 per- CHART C Vendors selling less than $100 million each in the metric space are ranked here as "Tier II" vendors by ADP Lightspeed. Suzuki (SU) was first among this group with 16.9 percent of Tier II sales. In 2013 Suzuki was still ranked in the top three vendors for the group, but had fallen to 13.6 percent, behind Fox (FX) and Helmet House (HH), which had both gained market share. These top three vendors collectively held 44.7 percent of the Tier II market in 2009. In 2013 they held 42.9 percent, a drop of 1.8 percentage points. Three other vendors are included in this Tier II group: Sullivan's (SB), BMW (BM) and Harley-Davidson (which appears here with metric dealers because of dual line dealerships). This group of three increased their collective market share from 26 percent in 2009 to 27.2 percent in 2013. CHART D Although Tier I and Tier II vendors account for 85 percent of all parts counter sales in this five-year period, there are another 92 vendors that provide the remaining 15 percent of sales. This chart shows the market share held by all three groups in the year 2009, and in 2013. Tier I vendors gain about 1.5 percentage points. The Tier II group dropped by the same amount. Tier III vendors remain steady at 15.7 percent of the market in both 2009 and 2013. PSB TIER 2 SALES OF RETAIL COUNTER PARTS BY VENDOR 5 YEAR STUDY, U.S. METRIC DEALERS, $617 MILLION IN COMBINED SALES SALES IN STUDY $40 MILLION TO $100 MILLION EACH CHART C 18% SU 16.9% 16% Pct of Tier 2 Sales held by this Vendor BY DAVE McMAHON FX 15.6% 15.0% 14.3% 14% 12% 13.6% HH 12.2% SB 10% BM 10.1% 10.0% 8.8% 8% 8.4% 8.4% HD 7.5% 6% 2009 2010 SU FX 2011 HH 2012 SB BM 2013 HD RETAIL PARTS COUNTER SALES BY VENDOR 5 YEAR STUDY, U.S. METRIC DEALERS, $2.8 BILLION IN SALES TIERS 1 AND 2 AND 3; CHANGE BETWEEN 2009 AND 2013 CHART D 80% 70% 67.24% 68.80% 60% Tier 1 vendors up by 1.5 percentage points 50% Tier 2 vendors down by 1.5 percentage points 40% 30% 17.09% 15.51% 20% 15.67% 15.69% Tier 2 Vendors Tier 3 All Other 10% 0% Tier 1 Vendors Year 2009 Recharging the industry AIMExpo makes final preparations for first-of-its-kind powersports show in U.S. Year 2013 Source: ADP Lightspeed BY LIZ KEENER MANAGING EDITOR No-go in snow U.S. Department of Energy study finds E-15 fuel is not approved for snowmobile engines. SEE PAGE 6 Fresh product Moose Racing showcases 60 new products at the Parts Unlimited/Drag Specilaties NVP. SEE PAGE 30 When the American International Motorcycle Expo concept was first announced in early 2012, the event seemed ages away. Now the inaugural show, built for dealers, manufacturers, aftermarket suppliers, service providers, consumers and the press, is knocking at the powersports industry's door, and many are on board to answer that call. The show kicks off Wednesday, Oct. 16 with two-and-a-half days of trade-only activities. AIMExpo then transforms on the afternoon of Friday, Oct. 18 to a consumer-facing event that runs through Sunday, Oct. 20. BIG START AIMExpo will begin in top-notch fashion as a grand opening session is planned at the Chapin Theater within the Orange County Convention Center first thing in the morning on Wednesday, before the show's 9 a.m. opening. The ceremony, which will last about 30 minutes, will feature AIMExpo "Champion" Kenny Roberts along with some still-secret spectacles. Larry Little and Mike Webster of show producer Marketplace Events said the launch is a can't-miss event for dealers, exhibitors and the press. "Basically it's going to be kicking off the whole concept of the AIMExpo and why we're Haydays 2013 Dealers share why they attend the "official start of winter" and the results of this year's show. SEE PAGE 41 NEWS: PSB Institute speaker bios. . . . . . . . . . . . . . PAGE 8 FINANCE: Suzuki's August sales grow . . . . . . . . . . . . PAGE 14 CYCLE: Dealer hosts helmet event . . . . . . . . . . . . . PAGE 36 AFTERMARKET: ABS technology advances . . . . . . . . . . . . . PAGE 52 AIMExpo expects a slew of press to attend its inaugural show. In preparing for that group, a Media Hub has been created in the middle of the expo hall floor, so journalists are nearby all the action and exhibitors. See AIMExpo on Page 6 While you're in Orlando, don't forget to take advantage of the PSB Institute @ AIMExpo. Check out the dealer training presenters and session topics starting on Page 8. The Orange County Convention Center in Orlando, Fla., will be home to the first-ever American International Motorcycle Expo Oct. 16-20. Spark designed to lead PWC resurgence BRP's Sea-Doo brand unveils $4,999 PWC pricetag BY DAVE McMAHON EDITOR IN CHIEF José Boisjoli recalls a time when PWC took a frontand-center spot on dealership showroom floors. "Now, you go into the dealerships and they are always at the back," Boisjoli told a group of reporters at the Sea-Doo Ignition Press Event in Orlando last month. "We want to see them back at the front again." Over the past eight years, the BRP president and CEO just might have watched the engineers, designers and marketers from the Valcourt, Quebec-based OEM develop a product that will return personal watercraft to its 1990s heydays. BRP officials were beaming in Orlando when Sea-Doo unveiled the Spark, the "Rec Lite" segment creator that weighs half as much as the next-heaviest craft on the market. Dealers were equally enticed at the prospect of customer interest in the $4,999 MSRP. See Spark on Page 12 Yves Leduc, BRP's vice president and general manager, North America division, revealed the Spark's $4,999 MSRP at a media event in Orlando. HOTNEWS Ducati teams up with VW Credit for financing Ducati North America has announced the launch of its retail financing pro- P01x13-PSB13-News.indd 1 gram for new and used Ducati motorcycles in the U.S. Supported by VW Credit, Inc. (VCI), a subsidiary of Volkswagen Group of America Inc., the newly established Ducati Financial Services (DFS) began operation on Sept. 5. The selection of financial services includes customer financ- ing through Ducati dealers across the U.S. In addition, DFS will also offer ancillary products for new and used motorcycles, including the Ever Red Motorcycle Protection Plan, Guaranteed Asset Protection (GAP) plan and Road Hazard Tire and Wheel See Hot News on Page 3 9/25/13 11:02 AM